The Stamp Duty Land Tax (SDLT) ‘Holiday’ that began in September 2022 will finish on 31st March 2025.
Stamp Duty Land Tax (SDLT), is a government tax paid by the buyer of a property as a lump sum on completion. It is paid by buyers who are purchasing a property or land over a certain price.
The amount of SDLT a buyer has to pay depends on several factors, including whether a buyer is:
A UK resident
Purchasing a property as an individual or company
A first-time buyer
Replacing a main residence
Purchasing additional property
The upcoming changes to SDLT will impact everyone planning to move, and could add thousands to the cost of your transaction. It is important to be aware of the upcoming changes and factor them into your budget.
From 1st April 2025:
- The purchase price at which First Time Buyers (FTBs) will start to pay SDLT will fall from £425,000 to £300,000 and from £250,000 to £125,000 for property owners moving from their current home to a new one, resulting in more homeowners having to pay the tax.
- From 1st April, existing property owners moving to a new home will pay 2% of the property value between £125,001 and £250,000 and 5% on the slice between £250,001 and £925,000.
- FTBs will pay 5% SDLT on the property value between £300,001 and £500,000. If FTBs buy a home worth more than £500,000 they will lose the SDLT discount altogether - the current limit is more generous at £625,000.
- An FTB completing a purchase at £595,000 on 31st March would pay £8,500 SDLT rising to £19,750 on 1st April, an increase of £11,250.
If you are not already very well advanced with your purchase you will need to budget for paying the new higher SDLT rates.
For an up to date quote, please contact our friendly and experienced team who will be happy to assist. Call us today or make an enquiry.